Mesabi Trust (NYSE:MSB) is an unincorporated, closed-end management investment trust that holds royalty interests in iron ore production on Minnesota’s Mesabi Iron Range. The trust’s sole business activity is to collect a fixed percentage of gross sale revenues from iron ore pellets produced by its lessees, primarily at eight mining complexes along the historic Mesabi Range. Mesabi Trust does not engage in mining or processing itself and maintains no direct mineral reserves, equipment, or personnel devoted to extraction.
The underlying iron ore properties are located in northeastern Minnesota, a region that has supplied the United States steel industry for more than a century. Royalty income is generated from taconite pellets produced under long-term leases with major operators, most notably Cleveland-Cliffs Inc. and its predecessors. These taconite pellets serve as the primary feedstock for blast furnaces and direct-reduction plants used by domestic steelmakers.
Established in 1986 through a reorganization of iron ore interests previously held by a major steel company, Mesabi Trust has provided investors with exposure to the iron ore market without direct involvement in mining operations. Over the decades, lease arrangements and sales agreements have been renegotiated to reflect changes in the domestic steel industry, while the trust itself has continued to distribute royalty income to its stockholders on a quarterly basis.
Corporate governance is overseen by an independent trustee, which administers the trust in accordance with its governing agreement. Mesabi Trust employs third-party service providers for transfer agency, accounting, and distribution functions. Its streamlined structure and focus on royalty income have positioned the trust as a unique investment vehicle for those seeking a pure play on U.S. iron ore production from the historic Mesabi Range.
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